Malaysian Insider, 10 August 2011
Anwar also said today that the deal raises fundamental issues of transparency. — file pic
He also said the deal would create a monopoly that will burden air passengers.
“Is the government specifically admitting that the so-called successful turnaround of MAS was a mere charade? The Prime Minister must be held accountable for misleading the rakyat on this.
“More importantly, the deal raises the question as to what is the fate of the GLC Transformation Programmes that had been launched by Prime Minister Najib Razak to much fanfare and wastage of millions of the rakyat’s money,” he said in a statement, claiming that the share swap would not benefit MAS employees.
The national airline recently recorded a first-quarter net loss of RM242.3 million against a profit of RM310.6 million in the same period a year ago.
MAS main shareholder Khazanah Nasional Bhd has defended previous efforts at reforming the national flag carrier with managing director Tan Sri Azman Mokhtar saying that the share swap was necessary to keep MAS afloat.
Anwar also raised concerns of AirAsia’s possible “monopoly” of the domestic airline industry with the recently-inked MAS-AirAsia share swap yesterday.
“The MAS-Air Asia share swap announced yesterday raises serious concerns over the dominance of Air Asia over MAS and effectively reducing competition between the two.
“This may lead to a virtual monopoly of the domestic airline industry in the long run and give rise to risks and concerns associated with monopolies, more so because of the involvement of cronies and political power brokers,” the Opposition leader said.
MAS main shareholder Khazanah Nasional Bhd finalised a share swap with Tune Air Sdn Bhd yesterday which saw the state investment arm pare down its stake in the ailing state carrier by almost a third.
“Is the government specifically admitting that the so-called successful turnaround of MAS was a mere charade? The Prime Minister must be held accountable for misleading the rakyat on this.
“More importantly, the deal raises the question as to what is the fate of the GLC Transformation Programmes that had been launched by Prime Minister Najib Razak to much fanfare and wastage of millions of the rakyat’s money,” he said in a statement, claiming that the share swap would not benefit MAS employees.
The national airline recently recorded a first-quarter net loss of RM242.3 million against a profit of RM310.6 million in the same period a year ago.
MAS main shareholder Khazanah Nasional Bhd has defended previous efforts at reforming the national flag carrier with managing director Tan Sri Azman Mokhtar saying that the share swap was necessary to keep MAS afloat.
Anwar also raised concerns of AirAsia’s possible “monopoly” of the domestic airline industry with the recently-inked MAS-AirAsia share swap yesterday.
“The MAS-Air Asia share swap announced yesterday raises serious concerns over the dominance of Air Asia over MAS and effectively reducing competition between the two.
“This may lead to a virtual monopoly of the domestic airline industry in the long run and give rise to risks and concerns associated with monopolies, more so because of the involvement of cronies and political power brokers,” the Opposition leader said.
The opposition leader charged that Tony Fernandes’s participation in the MAS board was a possible conflict of interest. — file pic
Under the “Comprehensive Collaboration Framework”, Tune Air, AirAsia’s main shareholder, will swap a 10 per cent stake in the no-frills airline for 20.5 per cent share in MAS.
Before the share swap, Tune Air was the biggest shareholder in AirAsia with 26.28 per cent stake while Khazanah held a total of 69.33 per cent share of MAS.
The MAS board will also see some new faces, namely Land & General Bhd founder Tan Sri Wan Azmi Wan Hamzah, former IJM chief executive Datuk Krishnan Tan, Astro chief executive Datuk Rohana Rozhan and David Lau from Shell Malaysia, who will act as independent non-executive directors.
AirAsia founder and chief executive Tan Sri Tony Fernandes and Datuk Kamarudin Meranun have also been appointed as non-independent non-executive directors of MAS.
MAS managing director Tengku Azmil Zahruddin Raja Abdul Aziz, who stepped down will join Khazanah as an executive director effective September 12, 2011. An executive committee led by Tan Sri Mohd Nor Yusof will manage the state carrier until a new chief executive is appointed while day-to-day operations will be handled by Khazanah executive director and MAS board member, Mohd Rashdan Mohd Yusof.
Anwar charged that Fernandes’s participation in the MAS board raised the likelihood of a conflict of interest in spite of Fernandes’s “non-executive” position.
“This is clearly a violation of corporate governance rules and should not be condoned.
“This deal also raises fundamental issues of transparency because of the secrecy in which it was shrouded. In this regard, the Securities Commission must investigate the possibility of irregularities including insider trading of the shares of both entities,” added Anwar.
The collaboration agreement comes into immediate effect for a period of five years with the option of an extension for a further five years.
Before the share swap, Tune Air was the biggest shareholder in AirAsia with 26.28 per cent stake while Khazanah held a total of 69.33 per cent share of MAS.
The MAS board will also see some new faces, namely Land & General Bhd founder Tan Sri Wan Azmi Wan Hamzah, former IJM chief executive Datuk Krishnan Tan, Astro chief executive Datuk Rohana Rozhan and David Lau from Shell Malaysia, who will act as independent non-executive directors.
AirAsia founder and chief executive Tan Sri Tony Fernandes and Datuk Kamarudin Meranun have also been appointed as non-independent non-executive directors of MAS.
MAS managing director Tengku Azmil Zahruddin Raja Abdul Aziz, who stepped down will join Khazanah as an executive director effective September 12, 2011. An executive committee led by Tan Sri Mohd Nor Yusof will manage the state carrier until a new chief executive is appointed while day-to-day operations will be handled by Khazanah executive director and MAS board member, Mohd Rashdan Mohd Yusof.
Anwar charged that Fernandes’s participation in the MAS board raised the likelihood of a conflict of interest in spite of Fernandes’s “non-executive” position.
“This is clearly a violation of corporate governance rules and should not be condoned.
“This deal also raises fundamental issues of transparency because of the secrecy in which it was shrouded. In this regard, the Securities Commission must investigate the possibility of irregularities including insider trading of the shares of both entities,” added Anwar.
The collaboration agreement comes into immediate effect for a period of five years with the option of an extension for a further five years.
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